FROM: U.S. SECURITIES AND EXCHANGE COMMISSION
SEC Charges Atlanta-Based Investment Adviser Representative and Related Companies with Securities Fraud
On September 11, 2013, the Securities and Exchange Commission filed an emergency action seeking a temporary restraining order and other emergency relief in federal court in the Northern District of Georgia, charging Paul Marshall (Marshall), a state-registered investment adviser representative, and three Atlanta-based companies that he owned and controlled - Bridge Securities, LLC, Bridge Equity, Inc. (collectively, the Bridge Entities) and FOGFuels, Inc. (FOGFuels) - with violations of the federal securities laws for misappropriating client funds.
According to the Commission's complaint, since at least 2011, Marshall, an investment adviser representative of the Bridge Entities, misappropriated at least $2 million from advisory clients. In its complaint, the Commission alleges that Marshall instructed clients, some of whom were elderly, to transfer funds to bank accounts under his control for purported investment in various securities, including mutual funds. Instead, Marshall used those client funds to pay personal expenses, including luxury vacations and private school tuition for his children. The complaint further alleges that Marshall concealed his fraud by providing advisory clients with fabricated account statements.
Additionally, the Commission's complaint alleges that Marshall, currently the majority owner and Managing Director of purported alternative fuel company FOGFuels, misappropriated $100,000 from an advisory client who invested in that company.
The Commission's complaint alleges that, through their misconduct, Marshall, the Bridge Entities, and FOGFuels violated Section 10(b) of the Securities Exchange Act of 1934 and Rule 10b-5 thereunder, and that Marshall and FOGFuels violated Section 17(a) of the Securities Act of 1933. Finally, the complaint alleges that Marshall and the Bridge Entities violated Sections 206(1) and 206(2) of the Investment Advisers Act of 1940.
On September 11, 2013, the Honorable Timothy C. Batten, Sr., United States District Judge for the Northern District of Georgia, granted the Commission's request for emergency relief, issuing an order temporarily restraining Marshall, the Bridge Entities and FOGFuels from further securities laws violations, freezing their assets, preventing the destruction of documents, requiring an accounting, and expediting discovery. The Court also set a hearing date of September 20, 2013 for the Commission's request for a preliminary injunction. The Commission's complaint also seeks a permanent injunction, disgorgement of ill-gotten gains with prejudgment interest, and civil penalties. Those claims will be adjudicated at a later date.
Showing posts with label ALLEGED SECURITIES FRAUD. Show all posts
Showing posts with label ALLEGED SECURITIES FRAUD. Show all posts
Monday, September 16, 2013
Friday, August 23, 2013
MAN PERMANENTLY ENJOINED FROM COMMITTING FURTHER VIOLATIONS OF SECURITIES ACT
FROM: SECURITIES AND EXCHANGE COMMISSION
Federal Court Permanently Enjoins Atlanta-Area Registered Representative Blake Richards from Securities Fraud Violations
On August 20, 2013, the Honorable Julie E. Carnes of the United States District Court for the Northern District of Georgia, entered an order of permanent injunction against Blake Richards of Buford, Georgia enjoining the defendant from further violations of the securities laws in connection with allegations that the registered representative misappropriated investor funds. Specifically, Richards is permanently enjoined from further violations of the antifraud provisions of the federal securities laws, Section 17(a) of the Securities Act of 1933 (“Securities Act”), Section 10(b) of the Securities Exchange Act of 1934 (“Exchange Act”) and Rule 10b-5 thereunder, and Sections 206 (1) and Section 206 (2) of the Investment Advisers Act of 1940 (“Advisers Act”). The Order further provides that the issues of disgorgement and civil penalties will be resolved on motion of the Commission at a later date, and that in response to that motion, Richards is precluded from arguing that he did not violate the federal securities laws. Further, for purposes of that motion, the Order also provides that the allegations of the Complaint shall be accepted as and deemed true by the Court. Richards consented to the entry of the order of permanent injunction, without admitting or denying the allegations of the Commission’s complaint.
The Commission’s complaint alleged that, since at least 2008, Richards, a registered representative of a broker dealer, misappropriated approximately $2 million from at least seven investors. The majority of the misappropriated funds constituted retirement savings and/or life insurance proceeds from deceased spouses. The Commission further alleged that Richards instructed investors to write out checks to entities under his control with the understanding that Richards would invest their funds in fixed income assets, variable annuities and/or common stock, and that none of these investments were made as represented. None of the investments appeared on the client’s brokerage account statements, and Richards received no commission income from these investments. The complaint further alleged that Richards siphoned off the funds entrusted to him for personal use.
Federal Court Permanently Enjoins Atlanta-Area Registered Representative Blake Richards from Securities Fraud Violations
On August 20, 2013, the Honorable Julie E. Carnes of the United States District Court for the Northern District of Georgia, entered an order of permanent injunction against Blake Richards of Buford, Georgia enjoining the defendant from further violations of the securities laws in connection with allegations that the registered representative misappropriated investor funds. Specifically, Richards is permanently enjoined from further violations of the antifraud provisions of the federal securities laws, Section 17(a) of the Securities Act of 1933 (“Securities Act”), Section 10(b) of the Securities Exchange Act of 1934 (“Exchange Act”) and Rule 10b-5 thereunder, and Sections 206 (1) and Section 206 (2) of the Investment Advisers Act of 1940 (“Advisers Act”). The Order further provides that the issues of disgorgement and civil penalties will be resolved on motion of the Commission at a later date, and that in response to that motion, Richards is precluded from arguing that he did not violate the federal securities laws. Further, for purposes of that motion, the Order also provides that the allegations of the Complaint shall be accepted as and deemed true by the Court. Richards consented to the entry of the order of permanent injunction, without admitting or denying the allegations of the Commission’s complaint.
The Commission’s complaint alleged that, since at least 2008, Richards, a registered representative of a broker dealer, misappropriated approximately $2 million from at least seven investors. The majority of the misappropriated funds constituted retirement savings and/or life insurance proceeds from deceased spouses. The Commission further alleged that Richards instructed investors to write out checks to entities under his control with the understanding that Richards would invest their funds in fixed income assets, variable annuities and/or common stock, and that none of these investments were made as represented. None of the investments appeared on the client’s brokerage account statements, and Richards received no commission income from these investments. The complaint further alleged that Richards siphoned off the funds entrusted to him for personal use.
Friday, July 5, 2013
OIL AND GAS PROMOTER ACCUSED BY SEC OF SECURITIES FRAUD
FROM: U.S. SECURITIES AND EXCHANGE COMMISSION
SEC Charges Oil and Gas Promoter with Securities Fraud
The Securities and Exchange Commission filed a civil injunctive action June 28, 2013, charging Bret L. Boteler of Bedford, Texas with conducting a fraudulent oil and gas-related securities offering that raised more than $17 million from 260 investors across the country.
The Commission’s complaint, filed in the United States District Court for the Northern District of Texas, alleges that, between October 2007 and December 2011, Boteler offered and sold the securities through his now-defunct company, EnerMax, Inc., and that he never registered the offering with the Commission. The complaint further alleges that Boteler falsely portrayed EnerMax to investors as an innovative, technologically sophisticated company offering high quality oil and gas prospects. The complaint also alleges that Boteler misrepresented and omitted material information about the speculative and unproven nature of the prospects in which EnerMax was involved, and that Boteler misused and misappropriated investor funds.
The complaint charges Boteler with violating Sections 5(a) and (c) and 17(a) of the Securities Act of 1933, and Section 10(b) of the Securities Exchange Act of 1934 and Rule 10b-5 thereunder. The Commission seeks civil penalties, disgorgement of ill-gotten gains (with prejudgment interest) and a permanent injunction against Boteler, including an injunction prohibiting him from offering or selling oil and gas-related securities.
SEC Charges Oil and Gas Promoter with Securities Fraud
The Securities and Exchange Commission filed a civil injunctive action June 28, 2013, charging Bret L. Boteler of Bedford, Texas with conducting a fraudulent oil and gas-related securities offering that raised more than $17 million from 260 investors across the country.
The Commission’s complaint, filed in the United States District Court for the Northern District of Texas, alleges that, between October 2007 and December 2011, Boteler offered and sold the securities through his now-defunct company, EnerMax, Inc., and that he never registered the offering with the Commission. The complaint further alleges that Boteler falsely portrayed EnerMax to investors as an innovative, technologically sophisticated company offering high quality oil and gas prospects. The complaint also alleges that Boteler misrepresented and omitted material information about the speculative and unproven nature of the prospects in which EnerMax was involved, and that Boteler misused and misappropriated investor funds.
The complaint charges Boteler with violating Sections 5(a) and (c) and 17(a) of the Securities Act of 1933, and Section 10(b) of the Securities Exchange Act of 1934 and Rule 10b-5 thereunder. The Commission seeks civil penalties, disgorgement of ill-gotten gains (with prejudgment interest) and a permanent injunction against Boteler, including an injunction prohibiting him from offering or selling oil and gas-related securities.
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